These 15 banks will be closed from tomorrow, do you have an account there? Know what to do

Major Banking Reform: Only 28 Regional Rural Banks to Remain as Government Implements 'One State, One RRB' Policy

Starting May 1, 2025, a major transformation will take place in the country’s rural banking system. The Government of India has approved the "One State, One Regional Rural Bank (RRB)" policy, under which 15 existing RRBs will be merged into other banks, reducing the total number of rural banks in India from 43 to 28. This move is aimed at strengthening and simplifying banking services in rural areas, and is expected to impact millions of customers nationwide.

Let’s explore what this change means for account holders and which banks are involved in the merger.

What is the 'One State, One RRB' Policy?

The "One State, One RRB" initiative is part of the government's strategy to streamline rural banking operations. By consolidating multiple RRBs operating in the same state into a single entity, the government aims to enhance service delivery, improve efficiency, and make banking more accessible for rural populations. The policy will come into effect from May 1, 2025.

Which States and Banks Are Affected?

The merger will impact 11 states: Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan. In each of these states, two or more existing rural banks will be merged into one unified RRB.

Here’s a detailed look at the changes:

State Banks Being Merged New Bank Name Headquarters Sponsor Bank

Andhra Pradesh	Chaitanya Godavari Gramin Bank, Andhra Pragathi Grameena Bank, Saptagiri Gramin Bank	Andhra Pradesh Gramin Bank	Amaravati	Union Bank of India
Uttar Pradesh	Baroda UP Bank, Aryavart Bank, Purvanchal Bank	Uttar Pradesh Gramin Bank	Lucknow	Bank of Baroda
West Bengal	Bangiya Gramin Vikash Bank, West Bengal Gramin Bank, Uttar Banga RRB	West Bengal Gramin Bank	–	–
Bihar	Dakshin Bihar Gramin Bank, Uttar Bihar Gramin Bank	Bihar Gramin Bank	–	Punjab National Bank
Gujarat	Baroda Gujarat Gramin Bank, Saurashtra Gramin Bank	Gujarat Gramin Bank	–	–
Jammu & Kashmir	J&K Gramin Bank, Ellaquai Dehati Bank	Jammu and Kashmir Gramin Bank	Jammu	–
Other States	Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan	Respective State RRBs	–	–

(Note: Dash entries indicate unconfirmed or publicly unavailable information.)

What Will Change for Account Holders?

If your account is with one of the merging banks, there’s no need to worry. Your deposits, loans, and all other services will continue without disruption. The only visible change will be the name of your bank. Customers will receive notifications from their banks informing them about new account numbers, if any, and the issuance of updated checkbooks and passbooks.

Key points for customers:

• No loss of services: Banking operations, including digital and physical services, will continue seamlessly.

• No reduction in branches: All existing branches will remain operational.

• New documents: Updated account numbers, checkbooks, and passbooks will be provided.

• Enhanced infrastructure: Digital platforms and customer service systems are expected to improve post-merger.

Why This Merger Matters

This is a landmark step toward financial inclusion and modernization of India’s rural banking system. With fewer banks and streamlined operations, rural customers can expect more reliable services, better technology access, and improved customer support. The policy also aligns with the government’s broader goals of digitization and rural development.

Final Thoughts

As the banking system transitions to the new structure, customers are advised to stay in touch with their respective banks for updates and ensure their contact information is up-to-date to avoid missing critical communications. While the transition may seem significant, it's designed to deliver long-term benefits to rural account holders across the country.